Strategy Analysis : Business Strategy

2034 Words Nov 12th, 2016 9 Pages
Strategy is the overarching plan followed by a business that dictates the direction for the organization. From the business strategy; all decisions in other areas of the organisation, from marketing to operations will follow as each department creates their own more specific action plans derived from the overall strategy that dictate how they will perform to shape their piece of the puzzle. The strategy an organization commits itself to is important because it is the “how” in ‘how are we going to get to where we want to be?’. Effective strategy requires the right actions at the right time, even the right action if it is at the wrong time ( a technology at the wrong time or before it is fully perfected such as the Sinclair C5 (Marks, 1990 )) is likely to fail. In fact around 80% of strategies fail anyway (MacIntosh and O 'Gorman, 2015, pp. 25-38). It is the personalisation of the relationship between each business and its’ own strategy that lends weight to the argument that management is an art.
All strategies begin with goals. These goals are set in relation to a certain set of circumstances which the business is facing. To begin making strategy, a grasp of the issues facing the business must be established. This diagnosis is reached by examining three areas of the business. Firstly, relevant performance indicators are taken, usually over a period of time to establish if performance is improving or decreasing as facts on their own don’t provide any context. Second the…
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